Why Are Governments So Reluctant to Adopt Widespread Wage Indexation

question 27

Multiple Choice

Why are governments so reluctant to adopt widespread wage indexation?

• A)it will make it more difficult to adjust to an adverse supply shock
• B)widespread wage indexation is very complicated in practice
• C)it may result in less political will to fight high inflation
• D)all of the above
• E)only A and C

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Definitions:

Transient Ways

Temporary or short-term methods or paths one might take in various contexts.

Psychoanalysis

A therapeutic approach that aims to explore unconscious motivations and conflicts as a means of treating psychological disorders.

Visible Motivations

Are the clearly observable drives or reasons behind one's actions or behaviors.

Humanistic Psychologists

Psychologists who focus on individual potential and stress the importance of growth and self-actualization.